Samantha LaDuc
@SamanthaLaDuc
Proud Founder + Mother.
Curious Cross-Asset Analyst.
Persistent Trader on Chase, Swing + Trend Timeframes.
"Often right for the wrong reasons."
Joined July 2012
2.9K Following 73.2K Followers
Oh the timing!!
Bessent intervenes tactically ahead of a soft 20-year Treasury auction.
The auction tailed by 0.5 bps with the bid-to-cover ratio falling below both the prior auction and six-auction average.
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ONLY reason why Bessent is intervening:
Buyers strike on longer-duration bonds.
From:
1. Corporate IG issuance at higher yields attracting fixed income away from UST auctions.
2. Inflation risks on falling dollar, war, fiscal dominance, etc
3. Bond raiders & Yen shorts re-engaging.
As Geoffrey sums up,
Bessent's "move is a nicotine patch for lung cancer." @GraphCall
Chart h/t @Adam__Josephson
"Buybacks represent a tiny fraction of the Treasury market even after being temporarily upsized, and need to be funded with yet more short-term debt."
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